moneycontrol
Hero MotoCorp up on strong results; how will it play ahead?
Edited by : AL CIRCLE
1 min read
The street gave a thumbs up to Hero MotoCorp ’s second quarter results as net profit accelerated better-than-expected 19.4% year-on-year to Rs 604 crore and sales rose a robust 28% to Rs 5,784 crore.
The stock hit a high of Rs 2,086.25, up over 4% in morning trade.
Auto sales have slowed down this fiscal,as expensive loans and high petrol prices have hurt passenger car demand. But two-wheeler demand has been strong. Hero MotoCorp saw July-September sales jump to their highest for the quarter at 15.44 lakh units, up 20% year-on-year.
Festive season demand also pushed up its sales in September to its highest ever for the month at near 5.5 lakh units.
While sales volumes have continued to accelerate, some easing of aluminium prices has also come as a much needed shot in the arm for Hero.High raw material prices had hurt margins of automakers for the last several quarters. But that is now on the wane, with Hero’s second quarter operating margin rising over 300 basis points to 15.8%, helped also by 1.5% price hike by the company.
The stock hit a high of Rs 2,086.25, up over 4% in morning trade.
Auto sales have slowed down this fiscal,as expensive loans and high petrol prices have hurt passenger car demand. But two-wheeler demand has been strong. Hero MotoCorp saw July-September sales jump to their highest for the quarter at 15.44 lakh units, up 20% year-on-year.
Festive season demand also pushed up its sales in September to its highest ever for the month at near 5.5 lakh units.
While sales volumes have continued to accelerate, some easing of aluminium prices has also come as a much needed shot in the arm for Hero.High raw material prices had hurt margins of automakers for the last several quarters. But that is now on the wane, with Hero’s second quarter operating margin rising over 300 basis points to 15.8%, helped also by 1.5% price hike by the company.
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